Supported by Department of Primary Industries and Regional Development Mid West Development Commission ANNUAL REPORT 2019-20 Walga Rock, Cue - part of the Murchison GeoRegion Credit: Rob Mulally and Georgia Rickard The Mid West Development Commission acknowledges the Yamatji people as the traditional owners of the Mid West region. This includes the Amangu people, Naaguja people, Wadjarri people, Nanda people, Badimia people and the Martu people. We recognise their continuing connection to land, waters and community and pay our respects to them and their cultures; and to elders, both past, present and emerging. Cover: Kalbarri Skywalk Credit: Bocol Constructions 2 MWDC ANNUAL REPORT - 2019-20 TABLE OF CONTENTS STATEMENT OF COMPLIANCE 3 OVERVIEW 5 Executive Summary 7 Operational Structure 8 Performance Management Framework 13 Outcome Based Management Framework 13 Changes to Outcome Based Management Framework 13 Shared Responsibilities with Other Agencies 13 AGENCY PERFORMANCE 14 Report on Operations 15 Actual results versus budget targets 24 DISCLOSURES AND LEGAL COMPLIANCE 27 Financial Statements 27 Certificate of Financial Statements 27 Statement of Comprehensive Income 28 Statement of Financial Position 29 Statement of Changes in Equity 30 Statement of Cash Flows 31 Notes to the Financial Statements 33 Certificate of key performance indicators 54 Relationship to Government Goals 55 Ministerial Directives 62 Other Financial Disclosures 62 Governance Disclosures 63 Board and Committee Remuneration 64 Other Legal Requirements 65 Government Policy Requirements 68 MWDC ANNUAL REPORT - 2019-20 3 STATEMENT OF COMPLIANCE 4 MWDC ANNUAL REPORT - 2019-20 Beresford Foreshore, Geraldton Credit: Dragonfly Media OVERVIEW EXECUTIVE SUMMARY Performance Highlights Key achievements during 2019-20 include the following, which are described further in Agency Performance. 1. Regional Economic Development (RED) Grants Program: Administered Round 2 of the program with seven recipients awarded grants to the value of $813,121. 2. COVID-19 response: Used our regional networks to gather ongoing intelligence about regional impacts from the pandemic to inform policy responses from government. 3. Energy: Significant progress made on the development of the Kalbarri micro-grid with construction starting on site. This was a key project identified, supported and advocated by MWDC under its Mid West Energy Development Strategy. 4. Renewable hydrogen: MWDC facilitated discussion and regional support for a number of potential renewable hydrogen proponents during the year’. BP received ARENA funding to support detailed feasibility work for Project GERI, meaning the potential to develop a renewable ammonia (and hydrogen) industry in Geraldton will be fully evaluated. MWDC ANNUAL REPORT - 2019-20 5 5. Oakajee and resources: Establishing the Oakajee Strategic Industrial Area (OSIA) is as a key strategic priority for the State government and MWDC to appropriately locate renewable hydrogen operations, minerals processing and manufacturing interests. 6. Mid West Food Industries Cluster: MWDC established a Mid West Food Industries Cluster to develop and implement a strategic plan for the recognition and growth of the region’s food industries. 7. Local content: Supported numerous Mid West Aboriginal businesses, with four obtaining nine State Government contracts valued at over $7.8 million. MWDC had significant input into the recently released WA Industry Participation Strategy (WAIPS), Buy Local Policy, Procurement Reform Initiative and Regional Sourcing Strategy. 8. Tourism: Kalbarri Skywalks and National Park Infrastructure project: Administered $20M of State government funding for the project, which is now complete with sites opened to the public. Economic impacts expected to exceed high growth projections. Murchison Geotourism Development: Supported development of stage one. This will be Australia’s first major geotourism development, to be launched on 18 September 2020. Sustainable Development of the Abrolhos Islands: Supported business case development (stage 2) and helped businesses with product development and processes navigation. Pink lake (Hutt Lagoon): Progressed a Visitor Infrastructure Plan with the Hutt River Traditional Owners to be implemented under Indigenous Land Use Agreement (ILUA). Commenced Management Plan process for Pink Lake and Lucky Bay under the ILUA in partnership with the Yamati Nation interim Board. Tourism Geraldton Mid West. Provided executive support to the industry-led tourism stakeholder group to foster greater collaboration and relationships between all tourism stakeholders and develop the group into a cooperative. 9. Space economy regional benefits: Developed a Mid West space economy regional benefits package to leverage regional economic development benefits from the Square Kilometre Array (SKA) and Mingenew Space Precinct. 10. Aquaculture development: Supported proponents in the emerging oyster industry at the Abrolhos Islands. Also supported Huon Aquaculture to identify constraints and opportunities to enable their proposed Yellowtail Kingfish sea cage lease, which will commence in alignment with completion of the Department of Primary Industries and Regional Development (DPIRD) finfish nursery in Geraldton. 11. Southern Rangelands revitalisation: Assisted the Rangelands Fibre and Produce Association to expand and drive a development agenda to revitalise the Southern Rangelands. 6 MWDC ANNUAL REPORT - 2019-20 12. Mid West Investment Plan: Supported five funded projects; Kalbarri Skywalks; Dongara to Northampton strategic corridor planning study; Beresford Foreshore coastal protection and enhancement project; replacement of Ballinyoo Bridge over the Murchison River; and Batavia Coast Marina Stage 2 investigations, remediation and planning. 13. Geraldton Tourism Jetty Infrastructure Project: Led development of a business case, engineering and economic modelling to establish two high speed vessel jetties to support Abrolhos Islands tourism and other commercial maritime ventures. This was used to secure $3M for delivery, which would provide economic benefits to the region of $16.5M. 14. Mid West and Pilbara Machinery, Engineering and Technical Services (METS): After signficant stakeholder engagement, MWDC scoped a 12-month staged trial to test regional capacity to supply heavy diesel mechanical refit and rebuilding services for large machines sourced from the Pilbara. Incorporates a training pathway to qualify regional mechanics. 15. Mid West Strategic Infrastructure: Consulted with stakeholders of the Goldfields Highway project to determine its value to community and industry, and to raise the profile of the project among decision makers. Supported Main Roads WA to progress a Stage 1 Infrastructure Australia submission to enable triple road train access on the Carnarvon to Muchea route. 16. Digital connectivity: The Digital Farm Grant Program provided $2M across agricultural areas of the Mid West and into the Wheatbelt. Using 100% local content, world-class fixed wireless internet services are delivering speeds of more than 200Mbps to farms. The Mid West also attracted a significant share of Mobile Black Spot towers in Round 5A of the Regional Telecommunications Program, with 10 new towers funded across the region. Capricorn Space Australian Ground Network – West, Mingenew Credit: Capricorn Space MWDC ANNUAL REPORT - 2019-20 7 OPERATIONAL STRUCTURE Enabling Legislation The Mid West Development Commission is a State Government statutory authority governed by a Ministerial appointed Board, inclusive of regional representatives, local government members and Ministerial appointments. The Commission functions under the provisions of the Regional Development Commissions Act (1993) and is one of nine regional development commissions in Western Australia. Responsible Minister Hon Alannah MacTiernan MLC, Minister for Regional Development Organisational Structure Mission To deliver jobs and growth by providing coordinated State Government services for regional development, utilising a client focused and collaborative approach in the traded economy. To be recognised as a preferred region in which to live, work, study and invest. Strategic Directions The Commission’s future direction is established under the MWDC 2019-21 Strategic Plan, supported by an annual Business Plan that identifies key project / priority deliverables for each financial period. 8 MWDC ANNUAL REPORT - 2019-20 For theyearended30June2020 Organisational Chart DPIRD organisational structure supporting the Mid West Development Commission Department of Primary Industry Director General Minister for Regional Development; and Regional Development Level B2CEO Agriculture and Food 70180001 Pillar Deputy Director General Industry & Economic Development Mid West Development Commission Level CL3 Board Service Level Agreement (Future) Directorate Director Regional Programs & Policy Mid West Development Commission Level 9 Chief Executive Officer 70180013 Branch Manager Portfolio Leadership Level 8 (PFT) 70190204 *All positions based in Gera Director, Regional Development Reports to #2 Responsible to #1 Level 8 (PFT) 70190941 Mike Bowley Glossary of Position FTE st Senior Regional Development Officer Regional Development Officer TFT = Temporary Full time Level 6 (PFT) Level 5 (PFT) PFT = Permanent Full time 70190942 70190943 TPT = Temporary Part Time Becci Davidson Anne Finlay PPT = Permanent Part Time Regional Development Officer Regional Development Officer Level 5 (PFT) Level